IBC Formation: Are Your Assets Protected?

By Richard Price
August 2006

A ruling recently passed by the Supreme Court has given local governments the power to seize private property to generate tax revenue. This could feasibly enable cities to order the removal of homes to make way for shopping centers or other private development.

The 5-4 decision means that home owners will have more limited rights. Thomas Merrill, a Columbia law professor and a specialist in property rights stated, “The message of the case to cities is yes, you can use eminent domain, but you better be careful and conduct hearings”.

Does this concern you? Only eight states – Arkansas, Kentucky, Florida, Illinois, Maine, Montana, Washington, and South Carolina – forbid the use of eminent domain for economic development unless it is to eliminate blight.

In a scathing dissent, Justice Sandra Day O’Connor wrote, “The specter of condemnation hangs over all property. Nothing is to prevent the state from replacing any Motel 6 with a Ritz-Carlton, and home with a shopping mall, or any farm with a factory.”

The bottom line – protect what you own. Within the last five years there has been an alarming increase in citizen control laws to the extent that your personal right to keep banking activities private and confidential are now being seriously infringed upon. Indeed, creditors and government agencies are well armed with an arsenal of legal maneuvers to strip you of your assets. Bank accounts in your name can be frozen, "Notices of liens" can be placed on your properties, your income can be garnered and even a safety deposit box can be seized with a "writ".

However, with careful planning and specialized information, your assets can be protected using an IBC to shield your assets. IBCs can protect you from product liability, malpractice suits if you are in the medical field, creditors, and even divorce proceedings. IBCs can also be used to hold real estate, valuable collections, precious metals, and shares of any offshore company of your choice.